GBP/USD Price Analysis: Eases from 2-week tops, still well bid near 1.2500 mark

• GBP/USD caught some aggressive bids on Tuesday and rallied to near two-week tops.
• The technical set-up favours bulls and supports prospects for further near-term gains.

The GBP/USD pair caught some aggressive bids during the early European session on Tuesday and rallied over 120 pips from daily swing lows, around the 1.2400 round-figure mark.

The strong positive momentum took along some short-term trading stops near the 50% Fibonacci level of the 1.2648-1.2247 recent downfall and lifted the pair to near two-week tops.

The pair is now looking to build on the strength beyond the 1.2500 psychological mark, representing a confluence hurdle comprising of 61.8% Fibo. and a one-week-old ascending trend-line.

Meanwhile, technical indicators on the 1-hourly chart are flashing slightly overbought conditions and seemed to be the only factor holding traders from placing fresh bullish bets.

However, oscillators on the daily chart have just started moving into the bullish territory and support prospects for a further near-term appreciating move amid weaker USD.

Hence, any intraday pullback towards the 1.2470 might still be seen as a buying opportunity, which should help limit the downside near the 1.2450 region (50% Fibo. level).

That said, failure to defend the mentioned support levels might prompt some technical selling and drag the pair back towards challenging the 1.2400 confluence support.

The latter coincides with 38.2% Fibo. level and 200-hour SMA, which if broken decisively might be seen as a key trigger for bearish traders and negate the constructive outlook.

GBP/USD 1-hourly chart

Technical levels to watch